Companies like Strata have already filed for the licence, while others like hBits and WiseX are in the process of doing so. hBits has announced that its first property will be listed as an SM REIT within three months. Most new properties will be in major cities like Delhi, Mumbai, and Bengaluru.
Shiv Parekh, Founder & CEO, hBits, said, “Currently, we are finalizing the platform structure, aiming to be fully operational before the end of the six-month migration window set by the regulator. Our initial offerings will feature SM REITs for new commercial assets valued between ₹75 crore to ₹100 crore, in Mumbai, Bengaluru, and Pune. Our overarching goal is to triple our Assets Under Management (AUM) from ₹365 crore to ₹1,000 crore by the end of the next fiscal.”
Mumbai and Delhi NCR have emerged as top hotspots for asset acquisition under the SM REIT umbrella. Additionally, tech markets show notable growth potential, with attractive investment opportunities in well-leased mid-sized assets suitable for SM REITs.
Mumbai, Delhi NCR, and Bengaluru lead the SM REIT market, representing 73% of assets in the top seven city office sectors. “Mumbai presents unparalleled opportunities for SM REITs, offering a healthy mix of well-leased large and mid-sized assets ideal for acquisition by Fractional Ownership Platforms. With over 55% of the Grade A office market, equivalent to 84.4 million sq ft of assets, available and suitable for SM REITs, the investment potential reaches approximately $18.7 billion,” said Dr Samantak Das, Chief Economist & Head of Research and REIS, India, JLL.
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Kunal Moktan, Co-founder & CEO of Property Share, added, “Through the SM REIT regulations, SEBI has effectively introduced an entirely new asset class to the retail and institutional investor universe. SM REITs provide a tremendous opportunity to monetise income-generating assets that currently lack liquidity and have the potential to transform the real estate investment landscape in India.”
Mumbai leads with a $9 billion opportunity for SM REITs, followed by Delhi NCR. Both cities offer well-managed portfolios of small and mid-sized leased assets under a strata-ownership model. Gurugram dominates the Delhi NCR office segment, capturing 61% of the SM REIT market, with significant opportunities in commercial corridors like Golf Course Extension and MG Road presenting a $3 billion investment potential.
Bengaluru supports a robust office ecosystem driven by strong tech demand. However, with large tech parks under institutional or single developer ownership, the SM REIT opportunity stands at approximately 51 million sqft. Key areas include the ORR Southeast stretch and Whitefield.
Hyderabad offers healthy opportunities for SM REITs, led by assets in the Hitec City and Gachibowli corridors representing a $3.7 billion opportunity.
India’s fractional ownership market is witnessing exponential growth, currently valued at around $500 million and expected to surpass $5 billion in Assets Under Management (AUM) by 2030.
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